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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: David Wright who wrote (10539)	4/25/1999 12:32:00 PM
From: NateC	Respond to of 14162

this sounds reasonably logical, for an engineer.

To: David Wright who wrote (10539)	4/26/1999 12:09:00 AM
From: NateC	Read Replies (2) \| Respond to of 14162

With Dell, here is how the ROIs/month come out after the May 50. Note that these are calculated using the template in McMillan, and Ameritrade's commission and margin structure. June 50 5.06% Aug 50 5.18% Nov 50 5.35% Jan 50 5.55% Given that the percentages per month are nearly the same, per your own comment, it sure seems to me that you would be better off compounding every two months, than every 4 or 6. Looking at the 45 series May 45 12.41% Jun 45 10.02% Aug 45 8.32% Nov 45 8.36% Jan 45 7.98% David wrote the above. I find it useful....and the compounding is important another good thingto do.....but this has more to do with pricing the options you are going to trade than with anything else...is to check out the amount of under/overpricing.. I find the information useful at : fast.quote.com for this

To: David Wright who wrote (10539)	5/8/1999 1:17:00 AM
From: tuck	Read Replies (2) \| Respond to of 14162

Dave, Herm, I usually go to the logical extreme of CCing one month out. If the stock happens to move fast, you can move with it. Which brings me to an EDFY update . . . I rolled up my May 7.5s to May 10s, capturing a nice little chunk of time premium. Edify is now at 12, and it looks like it might go a little further before consolidating. This has boosted the projected return to 13% in four weeks from 10%. With Edify very likely to hit 12.5 Monday, I am looking to roll up one more time! I hope to be as nimble on the way down :~} With regard to CCing on short time horizons . . . A while ago, Herm posted a chart that for EDFY would look like this: iqc.com My time horizon is now two weeks. I decided that using data on a shorter time scale to match my shorter horizon might offer some insight into the next few days: iqc.com Very different, eh!? I read continued short term strength TA wise. FA? Rumors of takeover starting to circulate. This thing should be wild for a while, but so far seems ridable. Anyhow, I wondered what the real TA mavens thought about this TA approach, particularly the daytrading types out there. David and Dan come to mind. But Herm, I'd like your opinion, too. My approach is CCing one month out, rolling up and down, as opposed to several months out and sideshows. What sort of WINS TA do y'all think best suits this approach? Good Trading, Tuck